[EMERGING MARKETS] are getting hit hard on a fresh bout of risk aversion, with CE3 FX initially being dragged lower on rumours of a Ukraine debt default. Eur/Czk has made a 25.93 high on the day so far having traded as low as 25.6040 earlier, whilst Eur/Pln has hit 4.1633 (4.1315 open). The Huf has reached almost 271 vs the Eur (276.50 in early trade) as contagion fears mount. Losses vs the Dollar even greater amounting to 1.25-1.8% on the day. Commodities have all moved lower in line with market moves (oil: $76.99brl, gold: $1133/oz) whilst the Dow Future is currently off 80 points. Latam FX also under the cosh but not faring quite so badly in pct terms (down by between 0.2 and 1% - the Chilean Peso faring the worst). Rouble is 1% lower on its basket with this welcome rest from recent appreciation seen helpful in terms of averting capital controls.
[RISK TRADES] certainly seem to be getting derailed and the [UKRAINE DEFAULT] talk appears to be the latest catalyst for the global stock, commodity and EM market slide, if not the fundamental reason. Latest on the rumours suggest that the speculation arises from the fact that Ukraine Railways did not manage to restructure a loan from Barclays Bank in time to make a $100 mn payment on the total $550 mn credit line, which terminates next year. However, this failure to meet the deadline occurred last week and the facility is not underwritten by the Govt. Nevertheless, the news seems to have spooked already risk averse markets, with even safe-havens like Gold coming under pressure as the Usd attracts more flight to quality flows. Note, spot bullion is down in the 'low' $1130/oz area and oil testing the water around $77/brl.
cnbc said ukraine story might be bs... but it may just be some of industry people caught on the wrong side. telling cnbc this.. dennis gartmen is crying...
[RISK TRADES] certainly seem to be getting derailed and the [UKRAINE DEFAULT] talk appears to be the latest catalyst for the global stock, commodity and EM market slide, if not the fundamental reason. Latest on the rumours suggest that the speculation arises from the fact that Ukraine Railways did not manage to restructure a loan from Barclays Bank in time to make a $100 mn payment on the total $550 mn credit line, which terminates next year. However, this failure to meet the deadline occurred last week and the facility is not underwritten by the Govt. Nevertheless, the news seems to have spooked already risk averse markets, with even safe-havens like Gold coming under pressure as the Usd attracts more flight to quality flows. Note, spot bullion is down in the 'low' $1130/oz area and oil testing the water around $77/brl.
cnbc said ukraine story might be bs... but it may just be some of industry people caught on the wrong side. telling cnbc this.. dennis gartmen is crying...
those who can, do. those who cant, talk about those who can
usd will only gain next week
